Mr. Hoang Phuoc Binh – Standing Vice Chairman and General Secretary of Chu Se Pepper Association (Gia Lai) said that pepper prices at the end of the year can even reach 90,000 – 100,000 VND/kg even if consumed in the domestic segment. Products in foreign markets may decrease due to the impact of the COVID-19 epidemic.
The gardener picked pepper with his own hands because he could not find the harvest.
Positive signal from the beginning of the year
In early 2021, the recovery trend of pepper prices was more obvious. Accordingly, from the beginning of the year to March 6, pepper prices in the Central Highlands and Southern provinces increased by about 13%, ranging from 57,500 to 59,000 VND/kg.
There was a time when the pepper price reached 60,000 VND/kg (Ba Ria – Vung Tau province) when the market showed good signals.
Talking to the writer, Mr. Hoang Phuoc Binh – Standing Vice Chairman and General Secretary of Chu Se Pepper Association (Gia Lai) said that this year the crop was lost and the people did not take much care, so the output dropped sharply. . In Gia Lai province alone, production in the 2020-2021 crop year is expected to decrease by 60-70%.
Mr. Binh said dealers and traders are buying more while the supply decreases this year, leading to a sharp increase in prices.
Nguyen Nam Hai, Chairman of the Vietnam Pepper Association (VPA), said that across the country, Vietnam’s pepper output in 2021 may decrease from 25-30% compared to 2020 to about 168,000 – 180,000 tons due to many reasons. old pepper gardens and people reduce investment in care.
According to VPA’s data, pepper production in Binh Phuoc province may decrease by over 50%; Dak Nong has decreased by 20% compared to the peak period in 2017. Dak Lak province alone cannot be assessed relatively because the survey is only representative in Cu Kuin and Buon Ho districts and productivity shows the difference between different provinces. region.
Forming a new price level
“The sale is currently taking place in Dak Nong province. Meanwhile, in other provinces, there are no goods for sale,” Binh said.
According to Mr. Nguyen Duy Tuong – Director of Bach Sinh Co., Ltd., the market is setting a new price level: 60,000 VND/kg.
“Farmers see many forecasts that the price will increase this year, possibly reaching 70,000 VND/kg, so they only sell enough to settle their debts.
Those who have the conditions but lack the local capital, spend it at the deposit agent to advance the payment and wait for the price to increase, making the real quantity of goods circulating in the market scarce, “said Tuong.
He also added that dealers do not dare to sell short, which is an extremely important factor to increase prices recently.
“This year, farmers finished harvesting and did not bring them to dealers. If there is a sale, the buying agent will not sell it. That has made the market circulate with an extremely small amount of goods,” said Mr. Tuong.
Pepper price can reach 100,000 VND/kg?
Mr. Tuong said that the price mark of 70,000 in the 2020-2021 crop year is not difficult to achieve in the near future because right from the beginning of the year, the important price milestone is VND 60,000/kg.
According to Mr. Binh, the price of pepper at the end of the year may even reach 90,000-100,000 VND/kg even if consumption in the restaurant segment in foreign markets may decrease due to the impact of the COVID-19 epidemic.
“Although consumption in the restaurant segment has decreased, the processed food segment is still good,” said Mr. Binh.
According to the Ministry of Industry and Trade, the trend of consuming black pepper has increased sharply thanks to the increase in foods containing black pepper in the fast food business in the North American market. Besides, the popularity of black pepper in traditional medicine also has a positive impact on the demand for this item, especially in the Chinese and Indian markets.
Pepper exports in the first month of the year recorded a positive growth. According to estimates of the Import-Export Department, pepper exports in January 2021 reached 18,000 tons, worth US$51 million, up 21.9% in volume and 41.7% in value over the same period last year. last.
The average export price of pepper in January 2021 is estimated at $2,833/ton, up 2.4% compared to December 2020 and up 16.2% compared to January 2020.
This agency forecasts that in the coming time, pepper prices will tend to increase. Vietnam’s pepper inventory from the previous crop is not much, while pepper production in 2021 is forecasted to be lower than 2020.
The pepper harvest in the Central Highlands provinces was delayed due to the re-emergence of the COVID-19 epidemic. As expected, new crops will appear on the market after February 20, 2021.
According to the USA (Vietnambiz)
